KPMG -2025无现金化：迈向经济繁荣之路：货币流转而非现金流转研究报告 Cashless A Journey Toward Economic Prosperity –Where Money Moves,Not Cash

KPMGTaseerHadi&Co.

CharteredAccountants

Cashless:AJourneyTowardEconomic

Prosperity-WhereMoneyMoves,NotCash

November2025

home.kpmg/pk

Content

01

Introduction

02

03

Challenges

FacedinToday’s

Landscape

04

Pakistan’sMove

TowardsaCashless

Economy

Roadmaptoa

CashlessEconomy

3

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

of

reserved.

theKPMGglobalorganizationlimitedbyguarantee.Allrights

©2025KPMGTaseerHadi&Co.aPartnershipindependentmemberfirmsaffiliatedwithKPMG

|

|RoadmaptoaCashlessEconomy

ChallengesFacedinToday,sLandscape

Introduction|Pakistan,sMoveTowardsaCashlessEconomy

Theriseofdigitaleconomyatbreakneckspeed

DigitalPaymentsandCashlessTransitionisthekeytoenableadigitalecosystem.Attheheartofeverydigitalecosystemliesarobustandinteroperablepaymentsnetworkconnectingbanks,fintechs,governments,merchants,andcitizens.Overthepastdecade,societiesaroundtheworldhavewitnessedarapidtransformationinthewaymoneymoves.Theriseofmobilebanking,

digitalwallets,andinstantpaymentsystemshavereshapedhowindividualsandbusinessestransact,makingphysicalcashlesscentraltoeconomic

activity.Fromcoffeeshopsthatonlyacceptcardstogovernmentspromotingdigitalpaymentinfrastructure,theshiftistowardscashless.

Asdigitalpaymentsbecomemorecommon,societiesaregraduallymoving

awayfromcash,ashiftthathasfar-reachingimplications:itaffectsfinancialinclusion,dataprivacy,taxation,monetarypolicy,andevenhowtrustisbuiltineconomies.Despitethesebenefits,cashisstillaking,ingrainedincitizen’s

paymentsbehaviorsinmanydevelopingregionslikePakistan.

Thedigitaleconomyisrapidlyreshapingtheworldaroundus.Thedigitaleconomyisthesumofalleconomicactivitydrivenbybillionsofdailydigitalinteractionsamongpeople,businesses,devices,data,andsystems.Atitscorelieshyperconnectivity;theever-growinginterlinkageofindividuals,

organizations,andmachinesthroughtheinternet,mobiletechnologies,andtheInternetofThings(IoT).Thishyperconnectedworldisreshapinghow

businessesoperate,howconsumersengage,andhowvalueiscreatedandexchanged.

Asdigitaltransformationacceleratesglobally,traditionalbusinessmodelsarebeingreimagined.CompanieslikeUber,Facebook,Alibaba,andAirbnbhavedisruptedentireindustries,notbyowningphysicalassets,butbyleveraging

digitalplatformstoorchestratevalue.Theseexamplesillustratehowthedigitaleconomyisnotjustaboutadoptingtechnology,butaboutfundamentally

transforminghowcommerceisconducted.

DigitalEconomyvs.Cashless

Thedigitaleconomyrefersafullspectrumofeconomicactivityenabledbydigitaltechnologiesincludingdata,platforms,andintelligentsystems,whereasacashlesseconomyreferstoaneconomicsysteminwhichfinancialtransactionsareconductedelectronicallythroughcreditanddebitcards,mobileapps,or

onlinetransfers,ratherthanusingphysicalcash.

Understandingwhatitmeanstobecashlessandwhatthattransitionentailsisthereforecriticalforpolicymakers,

businesses,andcitizensalike.

Inthispublication,weexploretheevolutionofthecashless

economyinPakistan,examiningitscurrentlandscape,

challenges,andopportunities,whiledrawingglobalinsightstonavigatingtheshifttowardcashlesssocietiesandwhat

opportunitieslieaheadforPakistan.

ІInemergingmarkets,cashusagehas

sharplydeclinedsince2014,however,culturalhabits&underbankedcitizenssustaincashreliance.Forecastsstill

pointtosteadydecline,thoughcashwillremainakeypartofthemix.

ІInmaturemarkets,cashhasalready

bottomedoutatsingle-digitshares,withonlymarginaldeclinesahead.Growthislargelytappedout,leavingcashina

steadystatewhiledigitalpaymentscaptureincrementalshare.

Source:GlobalPaymentsReport2025&WorldBankGlobalFindex2025

ІIntheworld’slowest-cashmarkets,

regulationandconsumerhabitshavestabilizedcashuse,withonly

incrementaldeclinesexpectedthrough2030,markingthethresholdofatrulycashlesssociety.

201420242030forecast%ofadultswithafinancialaccount

Introduction|Pakistan,sMoveTowardsaCashlessEconomy|ChallengesFacedinToday,sLandscape

Globalcashlesseconomymatrix

Countrieswereassessedacrosstwodimensions—DigitalInfrastructure(connectivity,financialsystemreadiness,andpaymentnetworks)andConsumerAdoption(digitalpaymentusageandbehavioralshiftfromcash).

CashlessLeadersdemonstratematureinfrastructure,highmerchantacceptance,andnear-universalrelianceondigitalpaymentsacrossdailytransactions.

Under-adopteddigitalmarketspossessstrong

technologicalandbankingsystems,yetdeep-rootedcashpreferencesandprivacyconcernscontinuetotemper

adoption.Inclusion-driveninnovatorshaveachieved

rapiddigitaluptakethroughmobilemoneyecosystems

andlow-costfintechsolutions,evenamiduneven

infrastructure.Meanwhile,Emergingadoptersare

buildingthenecessarydigitalandregulatoryfoundations,withusageexpandingsteadilybutstilllimitedinscale

relativetopopulationpotential.

4

©2025KPMGTaseerHadi&Co.aPartnershipfirmregisteredinPakistanandamemberfirmoftheKPMGglobalorganizationof

independentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Introduction|Pakistan,sMoveTowardsaCashlessEconomy|ChallengesFacedinToday,sLandscape|RoadmaptoaCashlessEconomy

Countriesaroundtheworldarestrivingtomovetowardsacashlesseconomy

Differentcountrieshavefolloweduniquepathstowardcashlessadoption,shapedbytheirinfrastructure,policies,andconsumerbehavior,illustratingthatthereisnosinglepathwaytobuildingadigitaleconomy.

India–PublicDigitalInfrastructureasaCatalyst

India’ssuccessisrootedinacomprehensivepublicdigital

infrastructurethatcombinesidentity,payments,andfinancialaccess.TheAadhaardigitalidentitysystem,JanDhan

accountinitiative,andtheintroductionoftheUnified

PaymentsInterface(UPI)instantpaymentsystemredefinedfinancialaccess.

Policy-driveninitiativeslikedemonetizationandtransactionincentivesacceleratedadoption,withUPInowhandlingover10billionmonthlytransactions.Digitalpaymentsarenear-universalinurbanIndiaandexpandingrapidlyacrossruralmarkets,anchoringthenation’sfintech-ledfinancial

inclusion.

Sweden–ASocietyBeyondCash

Swedenisrecognizedasaleadingexampleofacashlesseconomy,drivenbyfinancialinstitutions,governmentpolicy,androbustdigitalinfrastructure.Thetransitionbeganinthe1990sandacceleratedinthe2000s,drivenbyastrong

bankingcultureandtheearlyadoptionofcards,whichledtoelectronicpaymentssurpassingcash.

TheintroductionofSwishin2012,aninstantmobile

paymentapp,propelleddigitalpaymentusage,achievingover90%adoptionwithinadecade.Currently,cash

accountsforlessthan10%oftransactions.Riksbank’se-Kronapilotaimstoensurepublictrustandaccesstostate-backedmoneyinanear-cashlesseconomy.

China–APlatformDrivenRevolution

China’sdigitalpaymentslandscapewastransformed

throughanecosystem-ledinnovation.Technologygiants

suchasAlibabaandTencentembeddedpaymentswithin

theire-commerceandsocialmediaplatforms,creating

seamlessandubiquitousdigitalexperiencesforconsumersandmerchantsalike.

China’sdigitalpaymentsexceedUSD60trillionannually,withdigitalwalletsaccountingforover90%ofurban

transactions.Thissuccessisowedtotheregulatory

alignment,integrationofpaymentswitheverydaydigitalecosystems,andQR-basedpaymentswithnearzero

merchantonboardingcost.

Ghana–BuildingInteroperabilityandTrust

Ghana’s“Cash-LiteAgenda”demonstratesthevalueofinteroperabilityinemergingeconomies.TheGhana

InterbankPaymentandSettlementSystems(GhIPSS)

createdabridgebetweenbanksandmobilemoney

operators,whilethee-zwichsmartcardandagentnetworkenabledwiderparticipationintheformaleconomy.

Digitizationofgovernmentpayments,launchofanationalinteroperableswitchforbank–mobilemoneytransfers,“tap-and-go”transportpayments,andbiometricIDrolloutare

pavingthewayforacash-liteeconomy.

Digitalfinancialservicesnowreachover60%ofGhana’sadultpopulation,withcontinuedemphasisoninclusionandtrust.

©2025KPMGTaseerHadi&Co.aindependentmemberfirmsaffiliated

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

of

reserved.

theKPMGglobalorganizationlimitedbyguarantee.Allrights

PartnershipwithKPMG

5

©2025KPMGTaseerHadi&Co.aPartnershipfirmregisteredinPakistanandamemberfirmoftheKPMGglobalorganizationof

independentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.Allrightsreserved.

Introduction|Pakistan,sMoveTowardsaCashlessEconomy|ChallengesFacedinToday,sLandscape|RoadmaptoaCashlessEconomy

Pakistan’sdigitalfootprintataglance

TheGovernmentofPakistanisactivelypursuingacashlessanddigitallyconnectedeconomy.Despitelimiteduptakeinproportiontothecountry’spopulation,Pakistan’scurrentdigitalfootprintdemonstratessubstantialprogressinexpandingdigitalpayments,enhancingfinancialinclusion,andadvancingpublicsectordigitizationnationwide.

KeyHighlights:MeasuringtheGrowthofDigitalPakistanPakistan’sDigitalTransformationbyNumbers(2025)

ofall

88%

retailpayments(by

numberof

transactions)inFY

2025weredigital

accordingtotheSBP1.

>45

licensedfintechsanddigitalbankswereoperatingin

Pakistanasof2024.Between2022and20232,5digitalbanklicenseswereissued3.

Between2021and2024,Pakistanifintechsreceivedventureinvestments

exceedingUSD4

200mn

FBRisintegratingPOSandRaastdatatoenhancetax

compliance,withdigital

receipts.Consequently,salestaxcollectioninFY255grew

byover

40%

Raasthadprocessed1BtransactionsworthPKR

44Trillion+

by20256,enablinginstant,low-costpaymentsthatpowerP2P,G2P,e-commerce,andSMEgrowth.

DigitaltransactionvolumerosefromPKR4.7billioninFY23to

PKR6.4bn

inFY24.Thevalueofdigital

paymentsreachedPKR547

trillioninFY24,upfromPKR403trillioninthepreviousyear.

In2024,Bankedadultsincreasedto

~60%8.andbranchlessbankingaccountsexceeded

130mn

with276,794outof722,585registered

branchlessagentsmarkedasactive9.This

enabledmillionsofunbankedcitizenstohaveaccesstodigitalwalletsoraccounts.

©2025KPMGTaseerHadi&Co.aPartnershipindependentmemberfirmsaffiliatedwithKPMG

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

theKPMGglobalorganizationlimitedbyguarantee.Allrights

DigitalIdentity&infrastructurefoundations

Bankedpopulation

Digitalretailpayment

sharevolume

0%20%40%60%80%100%

20252020

3.0B

2.0B

1.0B

0.0B

100T

50T

0T

20202025

DigitalTransactions

DigitalPaymentsValue

1.5M

1.0M

0.5M

0.0M

POSterminals

QRenabled

merchants

20202025

Source:SBP,AnnualPaymentsSystemReview,FY2024-2025&NFIS2024to2028

DigitalEnablerKeyStatistics(2025)Institution

NADRADigitalIDSystem

Over130millionCNICswithbiometricdata

NADRA

Smartphonepenetration

57%ofpopulation(2025)

PTA

Internetusers

111millionactive(45.7%ofpopulation)

PTA

Mobilebroadband

59million4Gusers

PTA

Branchlessbankingagents

722,000+registered,287,000active

SBP(Mar2025)

Source:SBP,AnnualPaymentsSystemReview,FY2024-2025,SBP,BranchlessBankingStatistics(Jan-Mar,2025)&DataReprtal,DigitalPakistan:2025,

NationwidePushforCashlessRetail

Metric

FY24

FY25

Growth

QR-enabledmerchants

516,317

1,092,044

+111%

POSterminalsinstalled

125,000

195,849

+56%

QRtransactionvalue

PKR112B

PKR234B

+109%

Source:SBP,AnnualPaymentsSystemReview,FY2024-2025

6

of

reserved.

Introduction|Pakistan’sMoveTowardsaCashlessEconomy|ChallengesFacedinToday’sLandscape|RoadmaptoaCashlessEconomy

Movetowardsacashlesseconomy-Keyinitiativesundertakentodigitizetheeconomy

RAAST—Pakistan’sinstantpaymentsystem

RestaurantDigitalPaymentGSTReduction

ThegovernmentslashedGSTon

restaurantpaymentsfrom15%to5%forcardandmobilewallettransactionsto

encouragedigitalpayments.Themoveaimstoreducecashusage,improvetaxdocumentation,andbringmore

businessesintotheformaleconomy.

Earlydatashowsasharpriseindigitaltransactions,signalinggrowing

NHAM-TagMandate

RAASTenablesreal-time,low-costretailpayments(P2P,P2M,P2G)acrossbanks,microfinancebanks,fintechs,andPSPs.Sincelaunch,ithasprocessed1.9billion

transactionsworthPKR44.3trillion(SBPFY25).The

governmentisalsoallocatingPKR3.5billionannuallytosubsidizeandaccelerateP2MQRmerchantadoption.

TheNationalHighwayAuthority(NHA)launchedtheM-Tagmandatetodigitizetoll

collectionandreducecashhandlingatmotorwayplazasthroughRFID-based

payments.Theinitiativeaimstoenhanceefficiency,transparency,andtrafficflowby

replacingmanualtollpaymentswithautomateddigitaltransactions.FromFebruary

SBP’sGoCashlessCampaigns

SBPandindustrylaunchedtargetedcampaignstopushQR/digitalacceptanceinretailandseasonalmarkets(e.g.,SBP’s“GoCashless”forcattlemarketsaheadofEid-ul-Azha;campaignscoverdozensofmajormarkets).ThesecampaignsincludesubsidizedQRrollout,

merchantonboardingandpublicawareness.

2025,vehicleswithoutvalidM-Tagsorwithinsufficientbalanceincursurchargesofupto50%todrivecompliance.Thesystemlinksdirectlytousermobilewalletsandbankaccountsforreal-timebalancetop-upsandpayments.Adoptionhasgrownrapidly,withusageincreasingfrom55%inJanuaryto65%byFebruary2025.TheNHAplansto

expandthesystemnationwidetoachievefullcashlesstolloperationsby2026.

consumeradoptionofcashlesspayments.

-"

BohraBazaarDigitization

JazzCashandmerchantconsortiumshelpedconverthundredsoftraderstoacceptQRpayments.Socialmedia/industrypostsandcoveragereport

BohraBazaargoinglargelyQR-

enabledduringcampaignsreflectingthesuccesspotentialoftargeted

heritage-marketconversions.

NADRAQRAdoption

NADRAhasimplementedRaastQR

paymentsacross949servicecentersandit’smobileapplication.Thefeaturehas

alsobeenintegratedintothePAKIDapp,whichboasts10.7millionusers.

Consequently,theshareofcashlesstransactionsatNADRAfacilitieshasincreasedfrom66%to

76%asofOctober2025..

G2PandP2GDigitization

NationwideAirportDigitization

ThePakistanAirportsAuthority(PAA)has

MajorsocialprotectionprogramslikeBISPand

Ehsaasareshiftingtodigitaldisbursements,

transferringbenefitsdirectlytobankaccountsand

mobilewalletsforgreatertransparencyand

efficiency.SBPreportsshowlargewelfareand

payrollflowsnowmovingondigitalrails,with

transactionvolumesreachinghundredsofmillionstotrillionsofPKR.ThegovernmentaimstofullydigitizeallfederalandprovincialpaymentsbyJune2026.

decidedtotransitionallairportsnationwidetoa

airportshops,restaurants,andvendoroutlets;startingwithIslamabad,Karachi,andLahore.

CDADigitization

TheCapitalDevelopmentAuthority(CDA),

Islamabadisrollingoutamajordigitization

programmetoautomatelandrecords,enable

cashlesspaymentofcivicchargesandintegrateservicesintooneonlineportalaimingto

drasticallycutmanualprocessesandboost

fullycashlesssystem,enablingpassengersandstafftomakedigitalpaymentsforallservices.IncollaborationwiththeStateBankofPakistan,QRcode-basedpaymentswillbedeployedacross

RAASTP2MQRSubsidyScheme

QRCodesonGasBills

Topromotetheadoptionofdigitalpaymentmethods

andexpandfinancialinclusion,thegovernmentof

PakistanapprovedasubsidyofPKR3.5bnfortheSBPinAugust2025.Thesubsidywillbeusedtopromote

largescaleadoptionofRaastQRcode-basedpaymentsatmerchants’/retailoutlets.

SSGCandSNGPLhavestarted

printingRaastQRcodeson

consumerbills.Thetwocompaniescollectivelyserve10.74million

transparency.

©2025KPMGTaseerHadi&Co.aPartnershipindependentmemberfirmsaffiliatedwithKPMG

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

of

reserved.

theKPMGglobalorganizationlimitedbyguarantee.Allrights

customerswithannualrevenuesofRs384.91billion.Asofnow21,400consumershavepaidtheirgasbillsusingRaastQRcodes,contributingRs51.8million.

QRCodesonElectricityBills

10outof11electricitydistributioncompanieshaveadoptedRaast

QRcodesforbillpayments

becauseofwhich,over27,900

consumerstodatehavepaid

7

electricitybillsthroughRaastQRcodes,amountingtoRs128millionintransactions.

Introduction|Pakistan’sMoveTowardsaCashlessEconomy|ChallengesFacedinToday’sLandscape|RoadmaptoaCashlessEconomy

8

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

of

reserved.

theKPMGglobalorganizationlimitedbyguarantee.Allrights

©2025KPMGTaseerHadi&Co.aPartnershipindependentmemberfirmsaffiliatedwithKPMG

Nationaldigitizationplan

Strategic&PolicyLeadership

Pakistan’sdigitaltransformationisbeingadvancedthroughanintegratednationalstrategyandpolicyframeworkthatoperationalizestheDigitalPakistanVisionintoconcreteobjectivesandactionableprograms.

Coreobjectives

NationalPolicyFrameworks

KeyPolicyLeadership

Financialinclusion,paymentspolicy,

andNFISimplementation.

Nationalpolicyoversight,fiscaldigitizationleadership,andinter-

agencycoordination.

Shifttheeconomyfromcash-dominant(>60%)toacash-lightstructure.

NationalFinancialInclusionStrategy(2023-2028)

Increasedigitalfinancialinclusiontoover70%ofadultsby2030.

NationalE-CommercePolicy(2021)

Digitizeallpayments(government,retail,business)by2026.

PakistanDigitalPaymentStrategy(2022)

Supporta$10billion+annualdigitaleconomy.

SBPNationalPaymentsStrategy(NPSS)

IdentityverificationanddigitalTaxdigitization,e-filing,anddata

authenticationinfrastructureintegration

Governance&InstitutionalArrangements

Pakistan’scashlessanddigitaleconomydriveisoverseenbythePrimeMinisterthroughtheNationalSteeringCommitteeonCashlessPakistan,ensuringcoordinationacrossministries,regulators,andfinancialinstitutions.TheCommitteesetstargets,monitorsprogressandalignstheDigitalPakistanVisionthroughthreesub-committeesfocusedonkeydigitalpillars.

Sub-Committee1–DigitalPaymentsInnovation

andAdoption

Chair:Governor,SBP

Mandate:Drivedigitalpayments,financialinclusion,andpublic–privatecollaboration.

KeyResponsibilities:

•ImplementRaast/NPSS,

•Expandmerchantacceptance,

•Enhanceinteroperability,

•TrackDigitalPaymentsIndex,andsupportfintechinnovation.

RecentFocus(2024–25):Onboard1.1M+QRmerchants,

doubledigitalbankingusers,andboostsmall-retailQRadoption.

PublicInfrastructure

Sub-Committee2–DevelopmentofDigital

Chair:FederalMinisterforIT&Telecommunication

Mandate:Strengthendigitalpublicinfrastructureforsecure,interoperable,citizen-centricservices.

KeyResponsibilities:

•CoordinatewithNADRA,PTA,NITB

•ExpandbroadbandviaUSF

•Overseeclouddatacentersande-serviceplatforms;

•digitizepublicservicesviaRaast/e-Pay

•PromoteAPI-basedinfrastructureforfintechs.

RecentAchievements(2024–25):102Minternetusers,59M

4Gsubscribers;500+servicesonline;NADRAbiometricsystemintegratedwithfintechs.

Sub-Committee3–DigitizationofGovernment

Payments(G2PandP2G)

Chair:FederalSecretary,FinanceDivision

Mandate:TransitionG2PandP2Ggovernmentpaymentsfromcashtofullydigitalchannels.

KeyResponsibilities:

•DigitizeBISP/Ehsaas,salaries,pensions,andSOEpaymentsviaRaast;

•Expande-Payfortaxes/fees

•IntegrateRaastacrossgovernment;

•Trackdigitaltransactions;improvetransparency

RecentOutcomes(2024–25):PKR100B+welfarepayments

digitallydisbursed;10M+onlinetax/feepayments;e-challanande-stampadoptedprovincially.

Introduction|Pakistan’sMoveTowardsaCashlessEconomy|ChallengesFacedinToday’sLandscape|RoadmaptoaCashlessEconomy

9

firmregisteredinPakistanandamemberfirmofInternationalLimited,aprivateEnglishcompany

of

reserved.

theKPMGglobalorganizationlimitedbyguarantee.Allrights

©2025KPMGTaseerHadi&Co.aPartnershipindependentmemberfirmsaffiliatedwithKPMG

ChallengesfacedbyandLimitationofDigitalPaymentsinPakistan

TheexpansionofdigitalpaymentsinPakistanreflectsagrowingemphasisonconversion,inclusionandadoptionwithintheeconomy.

Conversion:Ontheconversionfront,theshiftofpublic-sectortransactionsfromcashtodigitalchannelsisevidentinthegrowthoftheinstant-paymentplatformRAASTwhichhasimprovedefficiencyandgeneratedannualsavings.

FinancialInclusion:Intermsoffinancialinclusion,digitalchannelsnowdominateretailpaymentswhichreflectsincreasedaccessforpreviouslyunderservedgroups.Governmentinitiativeshave

madesecureandaffordabledigitaltransactionspossibleforcitizensandbusinessesacrossdiverseregions.Byreducingrelianceoncashandcurbingtheundocumentedeconomy,thesemeasures

havethepotentialtounlockoverPKR1trillion10inadditionalresources,reinforcingbothfinancialinclusionandeconomicformalization.

Adoption:Meanwhile,adoptionamongindividualsandmerchantsisaccelerating.Mobilebanking,

branchlesswallets,andQR-enabledpaymentsarebecomingincreasinglywidespread.RisingfintechinvestmentsexceedingUSD150million11,theissuanceofnewdigitalbanklicensesanda111%12increaseinQR-enabledmerchantsreflectgrowingconfidencefromtheprivatesectorinPakistan’sdigitaleconomy.

Despitethisprogress,Pakistan’sdigitaltransformationstillhasalongwaytogo.Thegovernmenthassetambitioustargets,aimingtodoubledigitaltransactionsto15billion10annually,fullydigitizegovernmentpaymentsby2026andexpandinternetpenetrationfrom60%to80%10.However,

realizingthisvisionrequiresaddressingkeychallengesthatcontinuetolimitthefullpotentialofdigitalpaymentsinPakistan.

ConnectivityDeficitsandDigitalDivide

InternetaccessinPakistanremainslimited,withonly33%17of

thepopulationusingtheinternetin2022.Thecountryfacesthe

Urban-CentricDigitalInfrastructure

Pakistan’sdigitalpaymentinfrastructureremains

concentratedinmajorcities.Ruralandsemi-urbanareas

stillrelylargelyonover-the-countertransactionsatbank

branchesorbranchlessagents14.Thisimbalancereinforces

acyclewherelimitedaccesshindersadoptionandweak

thirdlargestbroadbandusagegapglobally,asaround140

FragmentedDigitalPaymentsEcosystem

Pakistan’sdigitalpaymentecosystemremainsfragmented

withlimitedinteroperabilityacrossbanks,walletsand

fintechs.AlthoughinstantpaymentsystemslikeRAAST

enablerealtimetransactions,seamlessintegrationisstill

million17peoplelivewithinmobilebroadbandcoveragebutstill

donotgoonline.Nearly17%17ofcitizensremainbeyond

broadbandreach,andaveragespeedsof16Mbps17forfixed

and20Mbps17formobileareamongthelowestinSouthAsia.

Theseconnectivitygapscontinuetohinderdigitalandfinancial

inclusion.

lacking.Cardpaymentsaccountforonly7%12ofe

commerceandmanywalletsandbankingappsdonot

supportcrossplatformtransactionsoreasycardlinking.

Thisfragmentationcreatesfrictionforusersandlimits

ecosystemgrowth.

demanddetersfurtherinvestment.

TrustDeficitinHighValue

Transactions

DataPrivacy&CybersecurityConcerns

Despiterapidgrowthindigitalpaymentvolumes,

Privacyandsecurityremainkeyconcernsin

GapsinDigitalandFinancialLiteracy

cashstillplaysadominantroleinPakistan’s

Pakistan’sdigitalpaymentslandscape.Despite

strongercybersecuritymeasuresfromtheStateBank

economy.AlthoughinQ3FY25retailpayment

Lowdigitalandfinancialliteracycontinuestobea

ofPakistanandfinancialinstitutions,publicmistrust

volumesreached2,408million13anddigital

majorhurdletodigitalpaymentadoptioninPakistan.

persistsamidfrequentdatabreachesandonline

channelsaccountedfor89%13ofthesebyvolume,

Onlyabout26%15ofadultsarefinanciallyliterate.

fraud.In2024,theBankingMohtasibPakistan

digitalchannelscoveredonlyabout29%ofthe

Thegapisevenwideramongwomen,wherejust

receivedover41,00018complaintsrelatedtodigital

paymentvalue(PKR48trillion13ofPKR164

18%16haveaccesstoformalfinancialservices.In

fraud.whileamassivebreachreportedlyexposed

trillion13)whiletherestremainedviaover-the-

ruralareas,limitededucationandlackofawareness

dataof180millionusers19.Theseincidentsfuel

counter/paper-basedchannels.Thisindicatesthat

discouragepeoplefromusingdigitalplatforms.

manyhighervaluetransactionsarestillnotmigrating

publicmistrustandhinderdigitalpaymentadoption.

todigitalmeans,limitingtraceabilityandefficiency.

Introduction|Pakistan,sMoveTowardsaCashlessEconomy|ChallengesFacedinToday,sLandscape|RoadmaptoaCashlessEconomy

Roadmaptoacashlesseconomy

Foundational

PolicyInitiatives

Roadtodigitizinganeconomy

commenceswithestablishingarobustdigitalinfrastructure,interoperable

systems,easyaccesstoinfrastructure,andpolicy-backeddigitizationof

governmentpaymentstogenerateearlytransactionvolumes.

RobustDigitalInfrastructure

Modernizedigitalinfrastructurethroughmodernizedtreasurysystems,betterconnectivity,andsubsidizedPOS/QRinfrastructureanddigitalwallets.

DigitalIdentity&Inclusion

Expandaccountownership,digitalIDs,andsmartphoneaccesstoensureuniversalacces